105 STAT. 220 PUBLIC LAW 102-40—MAY 7, 1991 described in subsection (a)), for damage for personal injury or death, or for property damage, negligently caused by such person while furnishing medical care or treatment (including the conduct of clinical studies or investigations) in the exercise of such person's duties in or for the Administration, if such person is assigned to a foreign country, detailed to State or political division thereof, or is acting under any other circumstances which would preclude the remedies of an injured third person against the United States, provided by sections 1346G3) and 2672 of title 28, for such damage or injury. "(f) The exception provided in section 2680(h) of title 28 shall not apply to any claim arising out of a negligent or wrongful act or omission of any person described in subsection (a) in furnishing medical care or treatment (including medical care or treatment furnished in the course of a clinical study or investigation) while in the exercise of such person's duties in or for the Administration. "§ 7317. Hazardous research projects: indemnification of contractors "(a)(l) With the approval of the Secretary, any contract or research authorized by section 7303 of this title, the performance of which involves a risk of an unusually hazardous nature, may provide that the United States will indemnify the contractor as provided in paragraph (2), but only to the extent that the liability, loss, or damage concerned arises out of the direct performance of the contract and to the extent not covered by the financial protection required under subsection (e).
- (2) Indemnity under paragraph (1) is indemnity against either
or both of the following: "(A) Liability (including reasonable expenses of litigation or settlement) to third persons, except liability under State or Federal workers' injury compensation laws to employees of the contractor employed at the site of and in connection with the contract for which indemnification is granted, for death, bodily injury, or loss of or damage to property, from a risk that the contract defines as unusually hazardous. "(B) Loss of or damage to property of the contractor from a risk that the contract defines as unusually hazardous. "(b) A contract that provides for indemnification in accordance with subsection (a) must also provide for— "(1) notice to the United States of any claim or suit against the contractor for death, bodily injury, or loss of or damage to property; and "(2) control of or assistance in the defense by the United States, at its election, of any such suit or claim for which indemnification is provided hereunder. "(c) A payment may not be made under subsection (a) unless the Secretary certifies that the amount is just and reasonable. "(d) Upon approval by the Secretary, payments under subsection (a) may be made from— "(1) funds obligated for the performance of the contract concerned; "(2) funds available for research or development or both, and not otherwise obligated; or "(3) funds appropriated for those pa3mients. "(e) Each contractor which is a party to an indemnification agreement under subsection (a) shall have and maintain financial protec-